New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-09-15
FAIR COMES TO THE RESCUE.
RECONCILED TO MACKAY AND FLOOD.
THE SORE STRAITS WHICH HAVE CAUSED THE
NEVADA BANK MANAGERS TO CALL ON THEIR
OLD FRIEND
fBY TELEGRAPH TO TILE TRISUSI


OLD FRIEND.
fBY TELEGRAPH TO TILE rRIsUSE1
BAN FRANCISCO Sept 1<.-The change In the man.
agement Of tho Nevada Bank has been the sensaton
Of the day, not only In this city, but throughout ue
State IN previous dispatches the whole history OF
the gigantic wheat deal that led to the recent financial
straits Of tho Nevada Bank has been told in detail
Nearly every statement in those dispatches has bcep
proved true by the developments Of the last fortnight
Tho change which occurred yesterday was due simply
to thisi Tho Nevsda Bank was hard pressed for
money Ex-senator Fair had supply OF cash SUM
dcnt to meet the banks demands. Maclay and Flood
got hold OF Fair that the only quarrel With him
was fomented by others and finally. induced him to
enter the bank once This is o victory for
Mr. Fair, who In returning to tho bank assumes its
presidency and the management Of Its affairs
OF course no man with any nice sense Of honor
would have become rcconcied to mon who frozc him
out of the bank not two years ago; but Fair has
always hankered after the favor and friendship OF
his old associates and the temptation to get back
Into the bank and run things himself was too strong
10 resist
Tho strained relations between Fair aad his old
partners continued until about ten days ago. Then
there was change. Fair was seen to emerge one
day from the Nevada Bank, which he had not entered
for two years. He was accompanied TO tho ooor pS
Mackay, who shook his hand. Fair said: "Gooopye'
john" and Mackay replied: Goodbye, Jim'" as I'D
tho old DAYS the Comstoo. II was not an hour
become reconciled. Then Fair paid several visits to
Flood at Menlo Park and the result was that loan
of HaggIn Tevis for half mill,cn, which tho BANK
called about two weeks ago, was taken up by taf
and the money turned over to the bank. ms uueo
them over dangerous strait and there Is authority
for saying that Fair has put into tho bank besihS
this sum- at least million. What security he has
received Is unknown, but IL is certain that he has not
taken any stock OF tho bank and IL Is pretty certain
that when tho present trouble Is over he VIII retro
from tho management, as he has no fondness ior any
work which keeps him confined TO desk
How sore have been the straits OF tho bank ior
ready coin is shown by the fact that all the business
property OF both Mackay and Flood has been for sao
for weeks. All local real estate agents have khown
of this but it has been kept secret from the pubic
Flood offered his block at Market and Fourth sts.
for IL 100000, while Machay who owns the opposite
corner nut this on the market at 100000. Tho
prices OF both are high that no purchaser can be
secured but II IL understood that any one With feao
money can get either piece OF property az cons'F
erlble reduction and even tao bank building l'sou -
offered for sale. Floods city house ana MS meho
Park villa have not been put on tho market, Tor th.
simrle reason that would give ten per cent o'
what they have cost.
ex-senator Fair was about the only person who
would have advanced large a sum as one million
and a half 10 the bank at present. he hao Pieh,y
OF ready money as he sold lately S1JOOoO OF bonus
to tho Government, and he recently tonsummated tho
sale Of the narrow gauge railroad from thls cy 10
santa Cruz to the Southern Pacific Phor TO his as
SistanCe
scrap OF collateral within reach. They even managco
10 ret money on Southern Pacific OF Arizona bonds.
which are seldom quoted, and In fact are In 20 tew
hands that they are never dealt IN. They also op
taIneo collateral from personal friends On wcD
they secured heavy loans .
For the ten years that Flood has hcen president
and real manager Of the bank hc has han as his cher
assistant George L. Branccr, young scOtch-
man bred to banking I'm Edinburgh
Rrander's friends declared that ho was
a financial genius, and IL could certainly be said Tor
him that he was careful and conservative How le
came 10 give the banks heavy loans TO DrcSbach AMI
Eosenfeld is something which his friends cannot under
stand The only theory 10 account for IL Is that loseh
field was his personal fricId IIo became injected
with the speculative mania and rcally believed it
nossIble 10 corner the wheat crop Of the world IL Is
even said that he ske1 all his personal estate In thc
deal Mackay has thrown tho blame OF the bank
heavy advances OH wheat upon Brander, but no one
believes tlat he made these loans without the SANCTION
OF either Flood or Mackay. No ono has been able 10
get word out OF Rrander lie feels sore over his re-
tirement, this chagTin may lead him to reveal I'M
porant facts. -, =, ,.
by the Dfesbach failure, were In consultation al.
IRON good authority they decided 20 begin suit at
once TO Flood and Msckay parties
10 the suit. The papers now being prepared lhis
suit will compel disclosure OF the banks books ana
will reveal connection OF the bank win the Whea
deal IL ed tO-lay that the Nevada ank called
half million The examiner found that they had
on hand